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Rajiv puts $2400 in a savings account.One year later it is worth $2580 Work out the annual rate of interest. |
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Answer» Given : Principal - $2400 AMOUNT - $2580 Time - 1 year. Find : ANNUAL rate of interest. Solution : The formula CONCERNING SIMPLE interest is = P*R*T/100. In the formula, P stands for principal amount, R stands for rate of interest and T stands for time. Interest will be calculated as = Amount - Principal. Interest = 2580 - 2400 = $180 Keeping the values in equation- R = (180*100)/(2400*1) R = 7.5% Thus, annual rate of interest is 7.5%. |
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